The bubble will burst. I don't think the moves the fed is talking about this year and next amount to all that much. Ultimately, our economy is going to be WTC 7 in my opinion. Controlled demolition "that no one could have foreseen" ultimately blamed on jihadists.

They don't want chaos in America on the level that some here fear. They want to boil the frog.

In a few years perhaps when the currency has been significantly devalued and inflation takes it's toll, cities/states will be in bankruptcy territory, and liquidation of assets likely will take place to pay back the bankers, and we start all over again.

Tiny move. I agree probably 0.1 percent. Then at least a few months before it changes again. Very slow, very small increases. It will have little if any impact on the economy (which is why it will be a small, slow move). There will be short term reactions for a few days perhaps but things will settle back down.

Donald Trump: 'What you're seeing and what you're reading is not what's happening'

"Truth isn't truth"- Rudy Giuliani

"China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

"Yeah, I have to say these guys(trolls) are pretty sharp. Sort of good to get a challenge and sharpen your thoughts." NorthCarolinaLiberty

I still hold that they will raise, marginally, predictable market sell-off, followed by some QE...

The classic sign of inflation, the wage cost spiral just isn't happening, I see no real reason why they should..

Wholesale natural gas just went under 2 bucks a mmbtu, coal is dirt cheap, crude oil, gasoline, and most importantly diesel are hitting multi year lows.. Those will all exert negative pressure on prices of just about everything as they work their way through the economy...
Real estate is coming back, bit its hardly a bubble at this point..

A rate increase really seems like a cure for a nonexistent problem at this point...

Tiny move. I agree probably 0.1 percent. Then at least a few months before it changes again. Very slow, very small increases. It will have little if any impact on the economy (which is why it will be a small, slow move). There will be short term reactions for a few days perhaps but things will settle back down.

If the economy is doing so well why are we not around 6% interest rate?

Do we need more immigration to stimulate or grow the economy and pay the Medicare?

Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

If the economy is doing so well why are we not around 6% interest rate?

Do we need more immigration to stimulate or grow the economy and pay the Medicare?

Which interest rates? There are literally thousands of interest rates. Short term rates. Bank deposit rates. Credit card rates. Long term rates. Mortgage rates. The Fed sets the rates at which banks can borrow money from them. But the general answer is that the rate of price inflation is so low. Basic rates take the expected rate of inflation during the loan period, add on their desired profit margin and probably kick in a "risk factor" for the likelyhood they get their money back. For rates to be six percent, inflation would need to be running about five percent.

Donald Trump: 'What you're seeing and what you're reading is not what's happening'

"Truth isn't truth"- Rudy Giuliani

"China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

"Yeah, I have to say these guys(trolls) are pretty sharp. Sort of good to get a challenge and sharpen your thoughts." NorthCarolinaLiberty

'We endorse the idea of voluntarism; self-responsibility: Family, friends, and churches to solve problems, rather than saying that some monolithic government is going to make you take care of yourself and be a better person. It's a preposterous notion: It never worked, it never will. The government can't make you a better person; it can't make you follow good habits.' - Ron Paul 1988

'We endorse the idea of voluntarism; self-responsibility: Family, friends, and churches to solve problems, rather than saying that some monolithic government is going to make you take care of yourself and be a better person. It's a preposterous notion: It never worked, it never will. The government can't make you a better person; it can't make you follow good habits.' - Ron Paul 1988

'We endorse the idea of voluntarism; self-responsibility: Family, friends, and churches to solve problems, rather than saying that some monolithic government is going to make you take care of yourself and be a better person. It's a preposterous notion: It never worked, it never will. The government can't make you a better person; it can't make you follow good habits.' - Ron Paul 1988

If they do "raise" rates, keep things in perspective. I don't even think .25% will show up on a long term chart. It's just a symbolic move. They need to get to 2 or 3% to claim they raised rates. Even 3% is historically very easy monetary policy.

In the short term, it won't, but it will decrease the ability of people and governments to increase the amount of debt. Currently the rates are much lower than what the market would provide. If the Fed was able to guess the market rate for interest, they would do a lot less damage.

"Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul

"Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."

WASHINGTON (MarketWatch) - The Federal Reserve voted unanimously on Wednesday to raise interest rates by a quarter point, marking the first increase in more than nine years. The bank raised its fed funds rate to a range of 0.25% to 0.5%, ending an unprecedented seven-year run of near-zero interest rates. The vote was 10-0. The board of directors also raised the discount rate to 1% from 0.75%. Looking ahead, the Fed said it will "carefully'monitor" actual inflation in light of 'current shortfall." And given current economic conditions, the bank said interest rates are only likely to increase in a "gradual" manner, ending up at a long-run target of 3.5%. That was unchanged from its September forecast.

WASHINGTON (MarketWatch) - The Federal Reserve's so-called dot plot signaled that the central bank still plans to increase interest rates four times in 2016, bringing its benchmark rate to a median of 1.4%. And the Fed's long-run goal of 3.5% remained the same. Yet the Fed also expects to act a bit less aggressively in 2017 and 2018. The bank sees the median fed funds rate at 2.4% at the end of 2017 vs. a prior forecast of 2.6%. The 2018 target was reduced a touch to 3.3% from 3.4%. Each dot in the dot plot reflects where individual members of the FOMC expect interest rates to end up at the end of the year.

As of about fifteen minutes after the announcement, the DOW is up about 100 points on the day- which will make the third straight day this week with triple digit gains if it holds.

Last edited by Zippyjuan; 12-16-2015 at 01:20 PM.

Donald Trump: 'What you're seeing and what you're reading is not what's happening'

"Truth isn't truth"- Rudy Giuliani

"China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

"Yeah, I have to say these guys(trolls) are pretty sharp. Sort of good to get a challenge and sharpen your thoughts." NorthCarolinaLiberty

Thanks Obama and all for turning this economy around -you were right all along.

Amazing, you sign a climate agreement and the economy strengthens -they really are intertwined...

Fear of man will prove to be a snare, but whoever trusts in the LORD is kept safe. Proverbs 29:25 "I think the propaganda machine is the biggest problem that we face today in trying to get the truth out to people."
Ron PaulPlease watch, subscribe, like, & share, Ron Paul Liberty Report

1. It's the first rate hike in nearly 10 years: This is the Fed's first rate increase since June 2006. Back then, the economy was hot: Unemployment was at 4.4%, and the housing bubble was about to burst. The Fed tried to cool it down by raising rates.

2. It's a good sign for the economy: The rate increase is a signal that the U.S. central bank is confident about the strength of the economy and its ability to handle higher borrowing costs. It also shows how far the economy has come since the Great Recession ended in 2009, when unemployment hit 10%. Now it's at 5%.

3. Interest rates are coming off zero: The Fed put rates near zero in December 2008 to boost the economy and stimulate the collapsed housing market. Rates haven't budged since then.

4. The Fed wants to raise rates slowly: The Fed increased its target rate from near zero to 0.25%. That's a very small move. The Fed also said it expects to continue to raise rates at a slow, gradual pace next year.

5. Savers will finally make a little money: If you put money in your savings account, you will slowly start to earn interest over the next couple years as rates start climbing higher. Savers haven't earned any interest since 2008.

6. Higher rates are usually bad for stocks: But not always. When the Fed last raised rates between 2004 and 2006, the S&P 500 actually gained 15%. But higher rates increase how much it costs companies to borrow. And that can the economy to slow, which is not what stock markets want. On Wednesday, U.S. stocks went higher after the rate hike was announced.

7. Home buyers, now's the time to pay attention: Mortgage rates won't skyrocket overnight but they are expected to start climbing. A typical rate on a 30-year mortgage is 3.9%. That's very low. In 2006, mortgage rates were above 6%.

8. Higher rates will make the dollar stronger. A strong dollar is a nice perk for U.S. travelers but it's not good for American businesses, such as Apple (AAPL, Tech30) and Nike (NKE), that sell their products abroad. A strong dollar makes American products more expensive -- and less attractive -- to foreign shoppers.

9. The Fed doesn't want to be late. The Fed doesn't want to hurt U.S. trade. Interest rates often take a few months to really have an impact on the economy. If it waited much longer, it runs the risk of an overheated economy.

10. Almost everyone had expected a rate hike: Over 80% of traders expected the Fed to raise rates, according to a CME Group analysis.

I don't expect much impact. The hike has been expected for several months and is already priced into things. That and the fact that the rate increase is so small.

NOT raising them at this time would have impacted things- it would have signaled economic weakness.

Last edited by Zippyjuan; 12-16-2015 at 02:08 PM.

Donald Trump: 'What you're seeing and what you're reading is not what's happening'

"Truth isn't truth"- Rudy Giuliani

"China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

"Yeah, I have to say these guys(trolls) are pretty sharp. Sort of good to get a challenge and sharpen your thoughts." NorthCarolinaLiberty